The Cologne Institute for Economic Research (IW) has revealed that women earn 21 percent less than men on average in Germany and defined it as one of the worst rates in Europe.
According to IW's statement, the German federal government has taken the situation into consideration and wants to enact a law to eliminate the inequality. The statement also revealed that there is no need for such a law as the wage gap stems from individual decisions.
It was underlined that women tend to work in small companies, stating that one of the determinant factors on wages is the size of companies or factories where individuals work. Furthermore, women rarely take up leading roles and work in part-time jobs more than men, according to the statement.
IW Director Michael Hüther said there is not an important reason for the state to make a new law to address the wage gap between male and female workers. He stressed that companies do not discriminate against women regarding wages, saying, "It is wrong to regard the wage gap between male and female workers as discrimination by companies."